NOAA Awards $119.9M Satellite Subscription Service to Strohman Enterprise Inc
Contract Overview
Contract Amount: $119,923 ($119.9K)
Contractor: Strohman Enterprise Inc
Awarding Agency: Department of Commerce
Start Date: 2023-05-01
End Date: 2027-04-30
Contract Duration: 1,460 days
Daily Burn Rate: $82/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SATELLITE SUBSCRIPTION SERVICE FOR INREACH DEVICES BASE AND 4 OPTIONS
Place of Performance
Location: MECHANICSVILLE, HANOVER County, VIRGINIA, 23116
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $119,923.2 to STROHMAN ENTERPRISE INC for work described as: SATELLITE SUBSCRIPTION SERVICE FOR INREACH DEVICES BASE AND 4 OPTIONS Key points: 1. Contract awarded for satellite subscription services for InReach devices. 2. Strohman Enterprise Inc. is the sole awardee. 3. The contract has a base period and four options. 4. The total value is $119.9 million over approximately four years. 5. The service falls under the Satellite Telecommunications sector.
Value Assessment
Rating: fair
The contract value of $119.9M for a satellite subscription service over four years appears to be within a reasonable range for similar telecommunications contracts. However, without specific per-unit data or detailed service level agreements, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. The lack of broader competition may have impacted price discovery and potentially led to a higher overall cost for the government.
Taxpayer Impact: The limited competition raises concerns about taxpayer value. Without a competitive bidding process, it's harder to ensure the government is receiving the best possible price for these essential satellite communication services.
Public Impact
Ensures continued communication capabilities for NOAA operations, potentially critical for data collection and dissemination. Supports the National Oceanic and Atmospheric Administration's mission through reliable satellite connectivity. The award to Strohman Enterprise Inc. highlights their role in providing specialized telecommunications services to federal agencies.
Waste & Efficiency Indicators
Waste Risk Score: 82 / 10
Warning Flags
- Limited competition
- Potential for higher costs due to lack of bidding
Positive Signals
- Essential service for NOAA
- Long-term contract provides stability
Sector Analysis
This contract falls within the IT and Telecommunications sector, specifically satellite communications. Spending in this area is crucial for government operations requiring remote connectivity and data transmission, with benchmarks varying widely based on service scope and duration.
Small Business Impact
There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
The award was made via a Purchase Order, suggesting it falls under established procurement procedures. Oversight would focus on contract performance, adherence to terms, and ensuring continued service delivery as specified.
Related Government Programs
- Satellite Telecommunications
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Limited competition may result in suboptimal pricing.
- Lack of transparency regarding specific device support.
- Potential for cost overruns if options are exercised without re-evaluation.
- No clear indication of small business participation.
Tags
satellite-telecommunications, department-of-commerce, va, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $119,923.2 to STROHMAN ENTERPRISE INC. SATELLITE SUBSCRIPTION SERVICE FOR INREACH DEVICES BASE AND 4 OPTIONS
Who is the contractor on this award?
The obligated recipient is STROHMAN ENTERPRISE INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $119,923.2.
What is the period of performance?
Start: 2023-05-01. End: 2027-04-30.
What specific InReach devices are being supported by this satellite subscription service, and what are their critical operational functions?
The specific InReach devices are not detailed in the provided data. However, InReach devices are typically satellite-based personal communication devices used for tracking, messaging, and emergency signaling in areas without cellular coverage. For NOAA, these could be crucial for field research, remote monitoring stations, or emergency response teams operating in oceanic or remote terrestrial environments.
What is the justification for limiting competition on this satellite subscription service contract?
The data states the contract was 'NOT COMPETED UNDER SAP,' which implies it was either above the SAP threshold or had specific justifications for limited competition. Common reasons include urgency, sole-source availability of the service or technology, or prior contract vehicles. Without further details, the exact reason for limited competition remains unclear, impacting potential cost savings.
How does the $119.9 million contract value compare to industry benchmarks for similar satellite subscription services over a four-year period?
Benchmarking this contract requires detailed service specifications, data throughput, device counts, and geographic coverage. However, for enterprise-level satellite communication solutions, costs can range significantly. A $119.9 million award over four years ($30 million annually) suggests a substantial service offering, potentially involving a large number of devices or high-bandwidth requirements, which may align with industry norms for large federal agencies.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: FD-2023-212
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7494 INDUSTRIAL PARK RD, MECHANICSVILLE, VA, 23116
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $149,904
Exercised Options: $119,923
Current Obligation: $119,923
Actual Outlays: $82,447
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-05-01
Current End Date: 2027-04-30
Potential End Date: 2028-04-30 00:00:00
Last Modified: 2026-04-09
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